Senator Sherwin Gatchalian on Monday pushed a new package of non-fiscal incentives, including zero-interest loans, to accelerate the country’s transition to electric vehicles (EVs), citing risks from heavy dependence on Middle East oil.
The senator said he will file a bill proposing zero-interest financing for EV buyers through state-run banks, alongside expanded infrastructure and usage incentives.
“This is the fastest way to get out of this hostage situation for Middle East oil,” he said at a press briefing. “If we transition to EVs, we reduce the need to import fuel.”
Gatchalian noted that about 70% to 80 percent of the country’s imported petroleum is used for transportation, making the sector a key target for electrification.
He also proposed extending incentives under the Electric Vehicle Industry Development Act beyond its current 2028 expiry by another four to six years.
Under the proposed measure, at least 50 percent of parking spaces in public areas and government buildings would be reserved for EVs and equipped with charging stations, with a possible transition to full EV allocation by 2030 to 2032.
Additional incentives under consideration include toll exemptions, free driving lessons for new EV users, and pilot programs offering free charging in select areas.
Gatchalian also pushed for aligning the public utility vehicle modernization program with EV adoption and said he has begun talks with manufacturers to establish local production of electric jeepneys.
